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Bitcoin? Pot? Banks Say No, Thanks

1/29/2014 10:40AM

In a struggling economy, banks can use new customers as much as any other business. But banks are steering far wide of medicinal marijuana, online gambling, and virtual currencies that may be legal but might also attract Uncle Sam’s eye. Andrew Johnson discusses on MoneyBeat. Photo: AP.

This transcript has been automatically generated and may not be 100% accurate.

... and ... the struggling economy banks need new customers as much as anybody right bought fearful of government regulators think the steering clear of some industries you might've heard from these other top marijuana online gambling virtual currencies businesses that might attracted the watchful eye of Uncle Sam ... page one story from Robinson Ellen and Johnson into is here talk about this one now ... I didn't even think his bank CEOs talk about loan demand is we visit we we think they could use some new markets ... but these are the markets are looking for ... now I'm in many cases what they're signing is that the potential revenue that they might get from some of these businesses just isn't worth the hassle ... on their businesses that Dow twelve legal in some cases may actually open them up to increased scrutiny because of the type of customers that are dealing with and because of ... past experiences with our regulators scientists to signing to back away ... yet I mean he is this affiliate of the cement medicinal marijuana right now which is recreational marijuana couple places ... it's a very strange ... ALU polka on the state level right legal but the federal level they are illegal ... and announced that the banks are keeping an eye on right if federal regulations right that they're worried that even if the state legalizes that aam that's not going to protect them from ... federal banking regulators coming after them for ... you whenever ... I'm now the Justice Department and has said that there are actually looking to issue regulations that would actually help banks address that so there may be some relief on the way for ... on financials petitions but that means be seen whether you know that'll be enough to actually get the more comparable to thank those types of businesses ... it yet how much money to actually have enough I'm not getting into the industry on that there's no industrywide calculations aam you know it many cases it's probably smaller parts of her smaller revenue streams for the banks that ... on that it's a wider array of businesses you have aam ... medical marijuana businesses you have payday lenders that rely on banks for processing services ... you have a check cashing businesses so ... they kind of runs the gamut ... yet ... the allocated to the bank saying look we've been had on the head X number of times over all these other things we did that which ... you were supposedly clean all ... out when we don't need any more headaches and that's what it is our new beginning in fall I think for some institutions that is a big part of it I JPMorgan Chase on the if you know cold or business class and eliminated relationships with about two thousand customers in different industries ... aam they've obviously been in the news a lot ... over the years for ... various regulatory actions so ... aam you know for them and maybe just a case of Tom wanted to help prevent more of that town around ... the ... art and the good stuff good story thank very much thanks